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Procurement procedures

Sustainable procurement

Sustainable procurement means building environmental, social and economic criteria into public procurement procedures.

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What does sustainable procurement mean?

Sustainable procurement describes the strategic alignment of public purchasing with environmental, social and economic aspects in mind. Contracting authorities look not only at the price but also at factors such as environmental impact, fair working conditions, resource efficiency and life-cycle costs. The idea behind this is that the public sector in Germany, with an annual procurement volume of several hundred billion euros, has considerable market power and can use it to promote sustainable development.

Sustainable procurement is put into practice at different stages of the procurement procedure. Already during the needs analysis, the authority can check whether a purchase is necessary at all or whether alternatives such as repair, rental or shared use are an option. In the specification, environmental criteria such as energy efficiency, recyclability or the use of low-pollutant materials can be defined as technical requirements. Sustainability aspects can feed into the award criteria as evaluation criteria, and the contract performance conditions can require social standards such as compliance with the ILO core labor standards.

Labels and certifications such as the Blauer Engel (Blue Angel), the EU Ecolabel or Fairtrade labels can serve as proof that sustainability criteria are met. Contracting authorities must always accept equivalent proof so that competition is not restricted unlawfully.

Relevance for bidders

Sustainable procurement is becoming more and more important for bidders, because more and more contracting authorities build sustainability criteria into their procurement procedures. Companies that invest early in sustainable products, processes and certifications gain a competitive advantage. It is a good idea to obtain relevant certifications, such as environmental management systems under ISO 14001 or energy management systems under ISO 50001, and to use them actively in bids.

Bidders should analyze the specific sustainability requirements of each tender closely and address them directly in their bid. Simply claiming to act sustainably is not enough. Instead, you have to provide concrete proof and evidence.

Legal framework

The legal basis for sustainable procurement is Section 97(3) GWB (German Act against Restraints of Competition), which expressly allows social and environmental aspects to be taken into account. Sections 58 and 59 VgV (Public Procurement Ordinance) govern the option of using environmental and social criteria as award criteria. Section 61 VgV allows special contract performance conditions to be set. The Competence Center for Sustainable Procurement (KNB) at the Procurement Office of the Federal Ministry of the Interior (BMI) supports awarding offices with implementation.

Related terms

Subcontractor
A subcontractor is a company that the main contractor hires to carry out certain parts of a public contract.
TED (Tenders Electronic Daily)
TED is the official online platform of the European Union for publishing tenders for public contracts above the EU thresholds.
Award criteria
Award criteria are the evaluation standards set by the contracting authority, used to identify the most economically advantageous bid and award the contract.
Bill of quantities
The bill of quantities describes in detail the work to be performed in a tender and forms the basis for pricing the bid.
Single-stage procurement procedure
A single-stage procurement procedure is a procedure in which all bidders submit their bids in a single phase, without a preceding participation contest.
Two-stage procurement procedure
A two-stage procurement procedure splits the procurement process into a participation phase for checking suitability and a following bidding phase for selected applicants.
Restricted tender (Beschränkte Ausschreibung)
The restricted tender is a below-threshold procurement procedure in which only selected companies are invited to submit bids.
Restricted procedure (Nicht offenes Verfahren)
The restricted procedure is a two-stage procurement procedure that starts with a competitive call for participation, after which only selected applicants are invited to submit a bid.
Bid opening (Submission)
Bid opening (Submission) is the formal act in which the bids received are opened and documented at a set time.